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Ecstasy for the Silver – a weekly recap on Gold and Silver – November 19th

November 21, 2010

Here is a short recap of the main changes that occur to the Gold prices and Silver prices for the week of November 15th to 19th:

The market of precious metals is heating up which is described with high volatility especially Silver. In particular, the short term silver futures rose by over four percent from beginning to end of the week, with an average daily percent change of nearly one percent. Silver price ended the week with a week high price of 27.18$/t oz.

In gold price, things are a bit different as its price continues to fall – a trend which started at the middle of last week. The average price of Gold in the penultimate week (8-12 Nov) was 1,397 USD /t. oz compare to last week’s average of 1,349 USD /t. oz, a 3.5% drop.

What will be in the next several weeks for gold prices? For that question, we should remember that these commodities – gold and silver, play a role as investment tools, and therefore are influenced by speculation, such as the tension around Ireland seeking bailout as its banks are crushing down, or China’s slowdown as there is speculation around China’s intent to raise its interest rates. Such News could explain some of the reasons for the decline in the past couple of weeks of Gold prices and the high volatility.

In the following table I present a summary of last week’s descriptive stats of gold prices and silver prices:

*This figure is calculated based on the percent change from the price at the beginning of the week compare to the price at the end of the week

I have also added a graph in which gold prices and silver prices are normalized in the following way: the price of each commodity is normalized to 100 for the price as of 15th of November – the beginning of the week.

In the final graph you can see the daily percent change of these precious metals for last week. According to the graph the Silver prices fluctuated throughout the week between -3% and 5%, while the Gold prices only changed between -2% and 1%, demonstrating less fluctuation compare to the silver price.